For organizations that are positioned to add debt to their toolkit, no-interest loans open an avenue for needed funds. Whether these investments are in the form of working capital term loans or bridge financing, they are designed to help span timing gaps in the flow of nonprofit revenue during this uncertain and critical time, while also planning for the future.
“This Fund will help dozens of organizations, primarily from underfunded communities, employ a financial resource that institutional barriers may otherwise bar them from accessing,” said Javier Alberto Soto, president and CEO of The Denver Foundation. “While the Fund is starting out with $3.2 million, we are hopeful that additional funders will join us as well.”
Organizations led-by and serving BIPOC individuals and women have long faced barriers in traditional access to capital. And while the federal government has allocated funding to help small businesses and nonprofits survive the pandemic’s economic impact, recent reports indicate that organizations led by women and individuals of color have struggled to access this funding.
“We know that when organizations led-by and serving communities of color and women have sufficient resources, they excel,” said Lindy Eichenbaum Lent, president and CEO of Rose Community Foundation. “This no-interest loan program not only provides immediate funding to vital community organizations, it offers a low-risk way for these nonprofits to manage debt and build credit, making them better candidates for financing from the commercial market in the future.”
NFF draws on its long history of investing in nonprofits, including its experience managing other recovery loan funds, and shares the Fund’s commitment to backing nonprofits led by and serving people of color. Loans will be between $50,000 and $250,000, with terms up to 48 months and no payments for the first year. 501(c)(3) nonprofits located in the seven-county Denver metro area or those with an endowment at Community First Foundation, Rose Community Foundation or The Denver Foundation are eligible to apply. Other application requirements include a demonstrated financial need, indication that loan capital is the appropriate financial tool to meet that need, reasonable expectation of payment and an organizational budget between $500,000 and $5,000,000.
“These loans will help nonprofits keep their doors open, continue to pay staff who are doing critical work and provide the financial runway needed to rethink business models and strategies,” said Norah McVeigh, Managing Director, Financial Services at Nonprofit Finance Fund. “Like many cities, Denver’s recovery depends on investment in social service providers during this time of crisis.”
These loans are in addition to – not a replacement for – the individual grantmaking strategies and opportunities of the participating foundations. Applications are open and available on the Metro Denver Nonprofit Loan Fund website, as is information about investing in the Fund. For interested applicants, the initial screening form deadline is January 8.
Community First Foundation works to activate ideas, people and resources to achieve the extraordinary in our community. Since 1975, we have been dedicated to listening to all voices, sharing big ideas, and co-creating innovative solutions. We help donors connect to the causes they care about and support nonprofits to ensure all communities have the opportunity to thrive.
The Denver Foundation is a community foundation that inspires people and mobilizes resources to improve life in Metro Denver. In 2019, the Foundation and its donors awarded more than $97 million in grants. The Denver Foundation has three roles: stewarding an endowment to meet current and future needs for Metro Denver, working with community leaders to address the core challenges that face the community, and managing more than 1,000 charitable funds on behalf of individuals, families, nonprofits and businesses.
Rose Community Foundation strives to advance inclusive, engaged and equitable Greater Denver communities through values-driven philanthropy. Envisioning a region strengthened by its diversity and generosity, the Foundation utilizes grantmaking, advocacy and philanthropic services to realize this aspiration. Since its founding in 1995, the Foundation has granted more than $318 million to nearly 2,000 organizations and initiatives, including $53 million in facilitated grantmaking from donor-advised funds. The Foundation has also supported nearly 70 nonprofit organizations in creating and growing endowments to sustain their vital work into the future.
Nonprofit Finance Fund® (NFF®) provides financing and consulting to help nonprofits and their funders better connect money to mission results. A community development financial institution (CDFI), NFF applies 40 years of experience to today’s social challenges. Since 1980, NFF has provided $942 million in financing and access to additional capital in support of over $2.8 billion in projects for thousands of organizations nationwide.